What is the difference between 4-bit and 8-bit operating mode in 16x2 LCD?

It would be helpful if somebody clarifies what the difference is. I have just started with Arduino and couldn't find any resources for this one.

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4-bit mode needs less lines but more transfer commands and therefore more time.

Is the correct answer "another four output lines and a bit more time"?

8-bit mode is your classic parallel interface: every byte of data or command is sent across 8 wires. In 4-bit mode, each byte is split into two nibbles and sent in two times across 4 wires. The datasheet will tell you the whole story.

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